Sale-leaseback of its two California facilities provides financing to
support the Company's growth plans
HAMILTON,
Mont., May 3, 2023 /PRNewswire/ -- Local Bounti
Corporation (NYSE: LOCL, LOCL WS) ("Local Bounti" or the
"Company"), a breakthrough U.S. indoor agriculture company
combining the best aspects of vertical and greenhouse growing
technologies, today announced that it has completed its
sale-leaseback transaction with an internally managed net-lease
real estate investment trust, for approximately $35 million. This transaction, combined with the
previously announced additional financing of up to $110 million through an amendment to its credit
facility agreements with Cargill Financial Services International,
Inc. ("Cargill"), provides a total of up to $145 million to support Local Bounti's growth
plans and immediate efforts to increase production in order to meet
accelerating demand for the Company's products.
Kathleen Valiasek,
Local Bounti's Chief Financial Officer, said, "We are pleased to
complete this non-dilutive transaction with an internally managed
net-lease real estate investment trust. This cash, combined
with proceeds available from our agreement with Cargill, provide us
with over $58 million of capital to
fund our operations. We are laser focused on executing our
growth plan, further scaling up our operations and delivering
locally grown fresh and delicious produce to consumers across the
country."
The Company has also entered into term sheets for
up to approximately $90 million of
debt funding from a licensed United States Department of
Agriculture (USDA) lender. The Company intends to utilize
these funds, if received, to reduce its use of construction
financing and lower its cost of capital. The Company anticipates
completing definitive documentation for an initial $35 million tranche with closing expected to
occur in the second quarter of 2023, with the $55 million balance to be completed at a future
date.
About Local Bounti
Local Bounti is redefining indoor farming with an
innovative method – its proprietary Stack & Flow Technology™ –
that significantly improves crop turns, increases output and
improves unit economics. Local Bounti operates advanced indoor
growing facilities across the United
States, servicing over 10,000 retail doors with its two
brands: Local Bounti® and Pete's®. Local Bounti grows healthy
food utilizing a hybrid approach that integrates the best
attributes of controlled environment agriculture with natural
elements. Local Bounti's sustainable growing methods are better for
the planet, using 90% less land and 90% less water than
conventional farming methods. With a mission to 'bring our farm to
your kitchen in the fewest food miles possible,' Local Bounti's
food is fresher, more nutritious, and lasts longer than traditional
agriculture. To find out more, visit localbounti.com or follow
Local Bounti on LinkedIn for the latest news and developments.
Forward-Looking Statements
This press release includes "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act of 1995.
In some cases, you can identify these forward-looking statements by
the use of terms such as "expect," "will," "continue," "believe,"
"estimate," "project," "intend," "should," "is to be," or similar
expressions, and variations or negatives of these words, but the
absence of these words does not mean that a statement is not
forward-looking. All statements other than statements of historical
fact are statements that could be deemed forward-looking
statements, including, but not limited to: statements regarding the
Company's ability to access additional capital when needed and on
terms acceptable to the Company and the closing of additional debt
financing from a licensed USDA lender. These statements are subject
to known and unknown risks, uncertainties and other factors that
may cause our actual results, levels of activity, performance or
achievements to differ materially from results expressed or implied
in this press release. The following factors, among others, could
cause actual results to differ materially from those described in
these forward-looking statements: the risk that Local Bounti will
fail to obtain additional necessary capital when needed on
acceptable terms, or at all; Local Bounti's ability to effectively
integrate the acquired operations of Pete's into its existing
operations; the ability of Local Bounti to retain and hire key
personnel; the uncertainty of projected financial information;
Local Bounti's increased leverage as a result of additional
indebtedness incurred in connection with the recent acquisition of
Pete's or as the result of the incurrence of additional future
indebtedness; restrictions contained in Local Bounti's debt
facility agreements with Cargill; Local Bounti's ability to repay,
refinance, restructure and/or extend its indebtedness as it comes
due; and unknown liabilities that may be assumed in the
transaction; Local Bounti's ability to generate revenue; the risk
that Local Bounti may never achieve or sustain profitability; the
risk that Local Bounti could fail to effectively manage its future
growth; Local Bounti's ability to build out additional facilities;
reliance on third parties for construction, delays relating to
material delivery and supply chains, and fluctuating material
prices; Local Bounti's ability to decrease its cost of goods sold
over time; potential for damage to or problems with Local Bounti's
CEA facilities; Local Bounti's ability to attract and retain
qualified employees; Local Bounti's ability to develop and maintain
its brand or brands it may acquire; Local Bounti's ability to
maintain its company culture or focus on its vision as it grows;
Local Bounti's ability to execute on its growth strategy; the risks
of diseases and pests destroying crops; Local Bounti's ability to
compete successfully in the highly competitive natural food market;
Local Bounti's ability to defend itself against intellectual
property infringement claims; changes in consumer preferences,
perception and spending habits in the food industry; seasonality;
Local Bounti's ability to achieve its sustainability goals; and
other risks and uncertainties indicated from time to time,
including those under "Risk Factors" and "Forward-Looking
Statements" in Local Bounti's Annual Report on Form 10-K for the
year ended December 31, 2022, filed with the SEC on March
31, 2023, as supplemented by subsequent Quarterly Reports on Form
10-Q and Annual Reports on Form 10-K, and other reports and
documents Local Bounti files from time to time with the SEC. Local
Bounti cautions that the foregoing list of factors is not exclusive
and cautions readers not to place undue reliance upon any
forward-looking statements, which speak only as of the date hereof.
Local Bounti does not undertake or accept any obligation or
undertaking to update or revise any forward-looking statements to
reflect any change in its expectations or any change in events,
conditions, or circumstances on which any such statement is
based.
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SOURCE Local Bounti